In the chaotic world in which we live, we feel that investors tend to over hype the wrong things and under prioritize the right things. For a decade now many investors have finally succumbed to the central bank narrative and the continued and never old mantra of “buying the dip.” The truth has become so self-fulfilling, that there isn’t even a “dip” to buy. Many pundits have attacked these global markets, have doubted the global markets and even more so have doubted the wherewithal of this rally. See here is the thing about the human psyche, we humans tends to be risk averse, and we tend to question everything, up until the very end. The funny thing about time, though, as it moves forward, it seems to leave in its wake, many investors dismayed, many in disbelief. Many will say, I know I should have been long, I knew this market was going up, I didn’t know exactly why it was going up, but it just keeps going. We have a feeling that many doubters, those patient risk averse, 60/40 allocating types have tossed in the doubting towel, especially over the last 2 years. Let’s just say the enticement has become too much, despite the fundamentals, despite all that is wrong with every value metric out there, who cares, just buy it! Talk to your friends, talk to Joe Blow on the street, nobody and I mean nobody thinks the markets can fall anymore. They say that it seems expensive, that it should fall, but it doesn’t, can you blame them? We don’t! It’s typical of the human psyche to succumb to unwavering pressures. In fact nobody we speak with calls the equity markets a bubble anymore, which means it’s just being accepted for what it has become, that is the defacto money market for the top 10%. We get it, but one thing we don’t is why everyone we talk to calls Bitcoin a bubble, are they joking, a mere $100bln market cap and that’s a bubble? It pales in comparison to the kind of rehypothecated capital that exists out there. So don’t fall for it, let’s just end the bubble talk any further, for any market in fact, Bitcoin, SP500, Real Estate, forget it, Bubbles no more. Fundamentals no more!

As we labor along these summer trading days, awash in great anticipation of the next FED policy move, we can't help but bring to light some of the driving facets behind the equity, bond and currency moves. We believe that our readers must understand the simple fact that central banks are the biggest driver, not only as to the daily direction of bets placed, but as to the overall trends in general. We heard for years how the plunge protection team didn't exist. We heard for years that dope Steve Liesman, that FED butt kissing media spinning journalist tell us that the central banks don't directly affect the markets. Now after 9 long years of ZIRP and $15 Trillion dollar major central banks balance sheets (not including PBOC), the markets are as frothy as ever. We hear bubble talk after bubble talk, bonds are in a bubble, equities are in a bubble, Bitcoin is in a bubble.